Post navigation

Builder Confidence Hits 11-Year High

In many areas of the country, there are not enough homes for sale to satisfy the number of buyers looking to purchase their dream homes. Experts have long proposed that a ramp-up in new, single-family home construction would be one of the many ways to overcome this inventory shortage.

According to a recent survey conducted by the National Association of Home Builders (NAHB) and Wells Fargo, housing market confidence amongst builders reached an 11-year high last month.

What Does High Confidence Mean for the Housing Market?

In a recent interview, Rob Dietz, Chief Economist and SVP for NAHB, put it this way:

“Higher market confidence will translate into more building and more inventory in 2017. We expect single-family construction to grow 10 percent next year.”

With 2016 marking the best year in real estate sales in over a decade, a 10 percent ramp-up in single-family construction will only aid in making 2017 an even greater year.

According to the latest US Census data, sales of newly constructed homes were up 3.7% over January 2016 as they reached a seasonally adjusted annual rate of 555,000. Dietz went on to comment:

“We can expect further growth in new home sales throughout the year, spurred on by employment gains and a rise in household formations. As the supply of existing homes remains tight, more consumers will turn to new construction.”

Bottom Line

With the weather and the real estate market heating up this spring, there will be a surge of new construction coming to the market soon.

Post navigation

About Me

My name is Eric Andrews. I'm REALTOR® with RE/MAX Real Estate Groups in Muncie. I was born and raised right here in Indiana. Growing up, I was active in Boy Scouting and earned the rank of Eagle Scout. I was also involved with 4-H for 10 years. I was homeschooled through 12th grade, and after graduation, I joined the United States Army and served as an Apache Helicopter Mechanic. My wife and I met in Colorado and married in 2010. We had our first son in 2011. A few years later moved back to Indiana and we're now expecting fraternal twins in May!

Reviews on Zillow

3205304

"contacted him & within minutes received a call back with the perfect house & other options. he has done what he can possibly do to help us with ... more "

5.0/5.0

by luana sego2009

3198469

"Since contacting Eric, he has been totally available at all times. His responsiveness is hasty. The knowledge he possesses and offers clients is ... more "